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					         Management Report FY2006




                                   May 21,2007
CORPORATE STRATEGY 2007   Credit Saison Co., Ltd.
                                   CREDIT SAISON CO., LTD.
   AGENDA

                 ◆ FY2006 Highlights                                                              1

                 ◆ FY2006 Initiatives                                                             3

                 ◆ FY2006 Financial Report                                                        8

                 ◆ Management Strategy                                                         28
                         Medium-term Management Plan and
                         FY2007 Management Initiatives


                 ◆ Reference Materials                                                         46
The figures contained in this document, which describes the Company’s business outlook and other information, is
based forecasts made in accordance with the information currently available to us. Future business results may
differ substantially from the forecasts described here due to the inherent uncertainly of such forecasts, as well as
variable factors such as future business operations and/or economic conditions.


CORPORATE STRATEGY 2007                                                               CREDIT SAISON CO., LTD.
    FY2006 Highlights                                                    ◇Non-consolidated ☆Consolidated



First half
◇    Aired new TV commercials featuring Brazilian soccer player Ronaldinho (April)
◇    Started issuing the” Kawatoku Card” under alliance with Kawatoku Co., Ltd,
     a department store operator (April)
◆    Started issuing the “Prince Card”, the “KDDI THE CARD SAISON”, and
     the “VIORO CARD SAISON” (April–September)
◇    Appointed first female director and first director in his thirties (June)
◆    Agreed on a comprehensive credit card alliance with Yamada Denki Co., Ltd. (June)
     Established joint venture, Yamada Financial Co., Ltd., and started issuing
     the “Yamada LABI Card”
◇    Acquired JOY Thoroughbred Club from JCB (June)
◆    Agreed on a business alliance with Shizuoka Bank, Ltd. in the retail finance business
◇    Started issuing guarantees on Resona Bank’s “cannael” consumer loans for working women
◆    Strengthened the alliance with Takashimaya Group (July)
◇    The balance of the credit guarantee business topped ¥100.0 billion (September)
☆    Atrium Co., Ltd. made a three-for-one stock split


 CORPORATE STRATEGY 2007                                                     CREDIT SAISON CO., LTD.       1
    FY2006 Highlights                                                ◇Non-consolidated ☆Consolidated



Second half
◆    Established a joint venture and formed shareholder’s agreement with Daiwa House Industry
     Co., Ltd (November)
     Established “Daiwa Financial” (November)
◇    Established joint venture, Shizugin Saison Co., Ltd., with Shizuoka Bank, Ltd. (October)
◆    Started operation of online shopping mall “Eikyu Fumetsu.com” (October)
◇    Lowered upper interest rate limit on SAISON CARD LOAN to 18% (November)
☆    JPN Service Co., Ltd. was listed on the Hercules market of the Osaka Securities at an initial
     price of ¥431,000 (October)
☆    Atrium Co., Ltd. Was listed on First Section of Tokyo Stock Exchange (December)
◇    Started Credit Saison home loans
★    Investment trust company SAISON ASSET MANAGEMENT CO., LTD. received approval
     from the Financial Services Agency (January) and started sales of proprietary investment trusts
     (March)
◇    Finalized basic agreements with Mizuho Bank and UC CARD to establish a joint processing
     company (January)
◇    Started issuing the “SoftBank Card” and the “Tokyo Metro To Me Card” (February–March)
◇    Decision made to lower upper interest rate limit on cash advances to less than 18% in June or
     July (March)
◆    Agreed to form a comprehensive alliance with Yamaguchi Financial Group, Inc.
 CORPORATE STRATEGY 2007                                                 CREDIT SAISON CO., LTD.       2
 FY2006 Initiatives



 1.Progress of Saison–UC CARD Integration

 2.Progress of Strategic Capital Alliances

 3.New Business Initiatives




CORPORATE STRATEGY 2007          CREDIT SAISON CO., LTD.
 1.Progress of Saison–UC CARD Integration
(1) Organization and personnel integration
① Credit organization integration
    ・Integrated screening/credit issuance/credit management divisions (September)
② Corporate/operational integration
    ・Integrated marketing/product development divisions and sales headquarters (February)
③ Personnel integration
    ・Human resources integration in all divisions without regard for past affiliation


(2) Service/functional integration
① Travel services
    ・UC Travel merged with CREDIT SAISON and Travel Desk contracted to PTS Corp.
     (March)
② Ticket services
    ・Integration into “e+” and improvement of service levels (June 2007)
③ Point program integration
    ・UC Niko–Niko gift points will function like SAISON
     Permanent Points (Eikyufumetsu points) (June 2007)             +
 CORPORATE STRATEGY 2007                                             CREDIT SAISON CO., LTD.   3
 1.Progress of SAISON–UC CARD Integration
(3) Performance of major affinity cards
 ① MMC Card
    ◆ FY2006 results       ・・・   No. of cards (cumulative): 1.9 million
                                 Annual transaction volume: ¥150.0 billion

   ◆ FY2007                ・・・   Change to point award rate (April); QUICPay compatibility
                                 (July); aiming for annual profitability at an early date


 ② Yamada LABI Card
   ◆ FY2006 results        ・・・ Card applications: 400,000
                               Shopping transaction volume: ¥8.0 billion
   ◆ Future prospects      ・・・ Achieve 1 million card applications at an early date; target
                                for LABI Card transaction volume is a 30% share of
                                Yamada Denki credit card sales

 ③ Other new affinity cards
    ◆ Affinity cards acquired through merger with UC CARD
       * Tokyo Metro To Me Card (with PASMO functionality)
       * SoftBank Card: Potential for major increase in applications

 CORPORATE STRATEGY 2007                                           CREDIT SAISON CO., LTD.    4
2. Progress of Strategic Capital Alliances–I
                                                                                       Lower row
           Lawson CS Card             Resona Card           Idemitsu Credit            shows new
                                                                                      alliances for
                                                                                         FY2006

            Network of 8,600
                                    Network of 620 Bank     Network of 6,000
           Convenience Stores
                                         Branches             Gas Stations
              30% share               22.4% share              50% share


  Takashimaya          Yamada            Shizugin         Daiwa House          YM Saison
     Credit            Financial        Saison Card        Financial           (tentative)



   Network of 19       Network of       Network of 180
 Department Stores                                        Network of 130       Network of 260
                       380 Stores       Bank Branches
                                                          Group Offices        Bank Branches
  33.4% share         34% share         50% share         40% share             50% share




  Contribution to consolidated ordinary income: ¥1.0 billion in FY2006

CORPORATE STRATEGY 2007                                             CREDIT SAISON CO., LTD.           5
    2. Progress of Strategic Capital Alliances-II
◆ FY2006 performance of capital alliance partners                                                     (10,000 cards; 10,000 people; ¥1bil)

                                                              Total             Transaction          Operating            Ordinary
                                      Applications
                                                           cardholders            volume              revenue              income
      Non-consolidated                      428                2,491               4,299.0              270.2                56.6
      Lawson CS Card
   30.0% (established Feb. 02)
                                               32                 163                 73.9                  8.2                0.2
       Idemitsu Credit
 50.0% (equity acquired Oct. 03)
                                               36                 450              550.7                  18.8                 2.7
       Resona Card
 22.4% (equity acquired Aug. 04)
                                               31                 245              417.7                  27.2                 1.9
   Takashimaya Credit
 33.4% (equity acquired Aug. 04)
                                               12                108               280.8                  12.2                 2.2
     Yamada Financial
   34.0% (established Jun. 06)
                                               40                  35                   7.9                 0.5                0.2
     Shizugin Saison Card
   50.0% (established Oct. 06)               -                    -                   -                   -                   -
    Daiwa House Financial                        Aiming for profitability in three years
   40.0% (established Nov. 06)               -
    YM Saison (tentative)
                                                      (within FY2009–FY2010)
 50.0% (to be established Jul. 07)
                                             -                    -                   -                   -                   -
             Total                          579                3,492              5,630.0
 * The translation volume is the total of purchases and cash advances. **Yamada Financial figures are also included in non-consolidated
 applications, total cardholders and transaction volume (since Saison Credit is the issuer for the Yamada LABI Card). ***Operating revenues
 and ordinary income totals are the simple sums of the operating revenue and ordinary income results of capital alliance partners.         6
     CORPORATE STRATEGY 2007                                                                        CREDIT SAISON CO., LTD.
 3.New Business Initiatives
(1) Online Shopping Mall Eikyu Fumetsu.com
   ◆ Launched in October for Net Answer members


   ◆ Customers can earn up to 19 times the normal SAISON Permanent Points
   ◆ 200 internet stores from various categories of retailers
   ◆ The daily amount handled averages ¥20.0 million (as of April 30, 2007)
  ・ ◆ Net Answer members (as of March 31, 2007): 1.5 million ⇒Targeting 2.5 million by end of
                                                                fiscal 2007
             Mall transaction volume target: ¥200.0 billion annually (FY2010)

(2) Establishment of Saison Asset Management Co., Ltd and
    Commencement of Investment Trust Sales (March)
   ◆ Saison Asset Management Co., Ltd.
       ・Fully owned subsidiary of Credit Saison ・Established: June 2006 ・Start of operations: March 2007
   ◆ Product features
     ・Fund of funds that include Vanguard and Sawakami Asset Management funds
     ・Provides customers investment products suitable for long-term asset formation with low fees
   ◆ Total net asset value (as of May 18)—・Saison Vanguard Global Balance Fund: ¥2,209 million
                                               Saison Asset Formation Achiever Fund: ¥572 million

                    Target for total asset value: ¥200.0 billion (five years)

 CORPORATE STRATEGY 2007                                                         CREDIT SAISON CO., LTD.   7
FY2006 Financial Report


         1.Operating Results

         2.Credit Risk Trends

         3.Financial Indices

         4.Main Indicators (Non-consolidated)



CORPORATE STRATEGY 2007            CREDIT SAISON CO., LTD.   8
Operating Results
                                                              Figures in parentheses are
                                                              year-on-year comparisons

                          Consolidated               Non-consolidated
               FY’06
               Result     ¥333.6 billion (121.5%)   ¥270.2 billion (124.9%)
Operating
revenues       FY’07
               Target     ¥340.0 billion (101.9%)   ¥273.5 billion (101.2%)

               FY’06      ¥80.1 billion (112.7%)    ¥55.6 billion (111.6%)
Ordinary       Result
income         FY’07
               Target     ¥56.0 billion (69.9%)       ¥37.5 billion (66.2%)

                FY’06
                Result    ¥14.8 billion (35.1%)     ¥10.2 billion (37.7%)
Net income
                FY’07     ¥26.0 billion (175.4%)
                Target                              ¥21.0 billion (205.4%)

CORPORATE STRATEGY 2007                                  CREDIT SAISON CO., LTD.     9
    Results by Business Segment
                                                                           (Unit: ¥1 billion)

                       Operating revenues                   Operating income
                                             Growth                               Growth
                      FY‘05        FY‘06                  FY‘05      FY‘06
                                                                     (百万円)
                                              rate                                 rate
Credit & Finance       226.5        284.1    25.4%          54.6         61.4       12.4%
Entertainment            17.9        16.9 △5.6%              2.6          2.0 △23.9%
Real Estate              19.2        20.5     6.6%           9.5          9.4      △0.1%
Lease                        7.1      6.7 △5.4%              3.3          2.1 △34.9%
Others                       5.1      6.5    28.1%           3.8          5.4       40.8%
Total                  276.1       335.0     21.3%          74.0        80.6         8.8%
Inter-group company      (1.4)       (1.3)            -     (4.5)        (5.4)                  -
transactions

Consolidated           274.6       333.6     21.5%          69.5        75.2         8.1%
   CORPORATE STRATEGY 2007                                        CREDIT SAISON CO., LTD.           10
  Contribution to Consolidated Results–I
           Group trends                                          (Unit: ¥1 billion)

                                                        FY’07
                           FY’05    FY’06     YoY                        YoY
                                                      (projected)
    Operating
    revenues
                            274.6    333.6   121.5%      340.0       101.9%
    Ordinary
     income
                             71.1     80.1   112.7%        56.0       69.9%

   Net income                42.2     14.8    35.1%        26.0      175.4%
     Per-share
    income (¥)
                           237.29    82.79    34.9%    144.76        174.9%
Ratio of consolidated to
 non-consolidated net
        income
                             1.56    1.42      -          1.49            -
 Shareholders’
  equity ratio
                            17.8%   16.2%      -          -               -

  CORPORATE STRATEGY 2007                               CREDIT SAISON CO., LTD.       11
     Contribution to Consolidated Results–II
  Ordinary income (Consolidated/non-
  Ordinary income (Consolidated/non-                                       Non-
                                                                                     Consolidated Difference
       consolidated difference)
        consolidated difference)                                        consolidated
                                                         Ordinary
                                                                         ¥56.6 billion     ¥80.1 billion   ¥23.5 billion
   Contribution to consolidated results
   Contribution to consolidated results
                                                          income

                                               Contribution to                                             Contribution to
   Main consolidated subsidiaries               consolidated      Main equity-method affiliates             consolidated
                                                   results                                                     results

Atrium Group                                                     Idemitsu Credit
 ・Atrium (real estate)                                           (credit card business)                    ¥0.46 billion
 ・Atrium Servicing Co., Ltd. (credit            ¥12.4 billion
  collection agency)
 ・AIC Co., Ltd. (liquidation of real estate)
Saison Fundex Group
 ・Saison Fundex Corp. (loans, mortgage                           Saison Information Systems
                                                 ¥6.0 billion
  securities)                                                    (information processing)                   ¥0.38 billion
 ・House Planning (real estate)
Vivre Group                                                      Resona Card
 ・Vivre (amusement business)                                     (credit card business)
 ・NOA Planning (consulting)                     ¥1.6 billion                                                ¥0.43 billion
 ・A&A (amusement business)
                                                                 UC CARD
JPN Collection Service                                           (information processing)                   ¥0.23 billion
(debt collection service)                       ¥1.0 billion

     CORPORATE STRATEGY 2007                                                             CREDIT SAISON CO., LTD.           12
       Operating Revenues (Consolidated/Non-consolidated)
        Operating revenues were up 20% on both consolidated and non-consolidated basis due an expansion of the
        credit card business following the integration with UC CARD, and strong performance in the Real Estate
        business.


                          Consolidated                                                    Non-consolidated
      ¥1 billion                                                             ¥1 billion
400
                                                                       400
                                           333.6       340.0
350
                                                                       350

300                                                       on
                                   274.6           b illi              300
                                                                                                                270.2 273.5
                                                 .4 YoY
                           240.4              ¥6
250                                          + 02%
                   220.3                      1                        250                                                    n
       212.2                                                                                            216.4              lio
                                                                                          175.7 190.2                   bil Y
                                                                                                                      .3 Yo
200
                                                on                                                                 ¥3
                                                                       200   171.8                                + 1%
                                            illi
                                           b Y                                                                     10
                                        .0
150                                 ¥ 59 Yo
                                   + 22%                               150
                                     1                                                                              on
                                                                                                               billi
100                                                                                                         3.8 YoY
                                                                       100                               ¥5
                                                                                                        + 25%
                                                                                                          1
50                                                                      50


  0                                                                      0

         '02        '03     '04      '05       '06      '07 estimate            '02        '03    '04     '05       '06    '07 estimate
       CORPORATE STRATEGY 2007                                                                   CREDIT SAISON CO., LTD.      13
  Ordinary Income & Net Income (Consolidated/Non-consolidated)

  Double-digit growth in ordinary income on both consolidated and non-consolidated
      basis; lower ordinary income forecast for fiscal 2007 due to reduced interest
                       rates, but net income is expected to increase
                    Consolidated                                                             Non-consolidated
¥1 billion                                                                     ¥1 billion
 90                                                                      90
                                             80.1
 80                                                                      80
                                  71.1          on
 70                                    b i ll i                          70
                                    .0 YoY
                                  ¥9
                                 + 7%
                         56.5     12                     56.0                                                              56.6
 60                                              △                       60
                                                   ¥2                                                        50.7         on
          51.0   52.9                            70 4.1b                                                            il l i Y
 50
                                                   % il                                              47.0        .9b Yo
                                                      Yo lion            50                                    ¥5
                                   42.2                 Y                      44.2         45.0              + 2%
                                                                                                               11            △
 40
                                     △                                                                                         ¥1    37.5
                                       ¥2                                40                                                  66 9.1b
                                     35 7.4b                                                                     27.1          % il
                            31.8       % il
                                                             26.0                                                      △          Yo lion
 30
                                             Yo lion                                                   25.8              ¥1         Y
                                                  Y                      30
                                                                                              24.3                     38 6.9b
                   22.4                                                                                                  % il
                                                                                                                                           21.0
                                                 148                                                                        Yo lion
 20                                                                      20                                                   Y
                                                                n
                                                            l io
                                                        b il Y                                                                10.2          l io
                                                                                                                                                n
 10                                                  1.2 o               10                                                             b il Y
                                                  ¥1 % Y                                                                             0.8 o
            △6.0                                 + 75                                                                             ¥1 % Y
                                                   1                               △5.0                                          + 05
      0                                                                    0                                                       2

           '02     '03      '04       '05       '06      '07 estimate             '02        '03       '04       '05          '06       '07 estimate
-10                                                                     - 10

  CORPORATE STRATEGY 2007                                                                             CREDIT SAISON CO., LTD.                   14
        Credit Risk Trends–I
         Increase in third party-mediated credit amount associated with interest
                                 return request (205% YoY)

■ Delinquency of 90 days or more         *Delinquency rate: Percentage of total receivables past due 90 days or more

                 Consolidated                                             Non-consolidated
4.0%                                              4.0%

                                                                                                              3.42%
3.5%                                              3.5%
                                                                   Cash advances
                                                                  delinquency rate
3.0%                                              3.0%                                     2.80%
                                         2.53%                                        2.52%    Total credit card
                         2.41%                                            2.42%
2.5%                                              2.5%        2.36%                            delinquency rate

        2.36% 2.48%                                                2.12% 2.04% 2.01%              2.06%       2.44%
2.0%                             2.25%            2.0%                                                        1.72%
                                                               1.89%
                                                                                                 1.42%
1.5%                                              1.5%                    1.73%
                                                                                      1.60%
                                                                                      Shopping delinquency rate
1.0%                                              1.0%
         '02     '03     '04     '05     '06                   '02         '03         '04         '05         '06

       CORPORATE STRATEGY 2007                                                       CREDIT SAISON CO., LTD.           15
       Credit Risk Trends–II
       Increase in cash advance write-off rate due to increase in interest return requests

  ■ Write-off trends
                                             *Write-off rate: Percentage of total receivables written off during the term


5.5%
                  Consolidated                      5.5%
                                                                          Non-consolidated
                                                                                            Cash advances write-off rate
5.0%                                                5.0%                   4.66%
                                                                                                                 4.37%
4.5%                                                4.5%
                                                                                             4.06%
4.0%                                                4.0%
                                                                            3.50%                    3.52%
3.5%                                                3.5%
                  2.88%                                       2.99%                       2.98% Total write-off rate
3.0%                                                3.0%                                                    2.74%
                                                                    2.75%                         2.46%
2.5%                                      2.29%
                                                    2.5%
                          2.52%                                             2.56%
2.0%                                                2.0%
          2.26%                   2.26%                         2.14%                                 1.64%      1.62%
                                                                                         2.11%
1.5%                                                1.5%           Shopping write-off rate
1.0%                                                1.0%
          '02     '03     '04     '05     '06                    '02         '03          '04          '05         '06

       CORPORATE STRATEGY 2007                                                       CREDIT SAISON CO., LTD.                16
      Credit Risk Trends–I
      Allowance substantially increased to meet increase in credit loss write-offs
 ■ Credit costs                       *Consolidated figures are aggregate delinquency costs

¥1 billion         Consolidated                              ¥1 billion          Non-consolidated
70                                                           70
                                                                             Write-off     Net increase in allowance for bad debt
                                                                                                                         57.0
60                                                           60
                                                                                                              51.5
                                                                                                                         5.8
50                                                           50
                                                                                                    39.9
                                                                                                                8.1
                                                                               36.3       37.3
40                                                           40
                                               66.0                                                 3.7
                                      60.4                                       1.7      5.9
                               46.7                                  28.3
30                      43.8                                 30
               41.2                                                   4.5                         36.2        43.4       51.2
        31.1                                                                             31.4
20                                                           20
                                                                               34.6
                                                                      23.8
10                                                           10


  0                                                            0
         '02      ’03    '04    '05     '06   '07 estimate            '02        ’03       '04       '05        '06     '07 estimate

      CORPORATE STRATEGY 2007                                                             CREDIT SAISON CO., LTD.                   17
    Trends in Interest Return Requests

Requests to return past interest paid are increasing, but within expectations.
Adequate reserves have been set aside (five years’ worth) to meet future return requests.
Return requests are projected to peak in FY2007 and start declining in FY2008


                                                                                                            (Unit: ¥1 billion)

                                              3.0



                             1.8

                  0.6
        0.2                                 7.0
                             4.1
        2.2       3.1
         '04       '05        '06          ’07 (projection)   '08 (projection)   '09 (projection)     '10 (projection)   '11 (projection)
                                    Reduction of principal              Cash out



   CORPORATE STRATEGY 2007                                                                          CREDIT SAISON CO., LTD.                 18
        Shareholders’ Equity Ratio & Return on Equity
      ■ Shareholders’ equity ratio &
                                                                                  Rating
        return on equity
                                                                 R&I A+           S&P A‾            Fitch A
                     Consolidated                                          Non-consolidated
30%                                                        30%
               Shareholders’ equity ratio
25%                                                        25%
                           19.9%                                   21.9%
        18.4%                         17.5%                                22.7%     23.1%
20%                                                        20%
                                                   16.2%
                   19.1%                                          Shareholders’ equity ratio 19.4%          17.8%
15%                                                        15%
                                      12.8%
                            11.4%
                   9.1%                                                     9.8%      9.2%        8.5%
10%                                                        10%


 5%                                                4.0%     5%
                                                                                                                 3.0%


 0%                                                         0%
         '02        '03     '04        '05         '06             '02      '03        '04        '05            '06
         -2.5%                                                     -2.1%
-5%                                                        -5%
                    ROE      Shareholders’equity ratio                     ROE       Shareholders’equity ratio
        CORPORATE STRATEGY 2007                                                    CREDIT SAISON CO., LTD.              19
       Fund Structure–I
        Makeup of interest-bearing debt
                           Consolidated                                                                         Non-consolidated
                                                                                      Corporate         CP      Securitization      Debt            (Unit: ¥100 million)
               Corporate    CP   Securitization         Debt                          bond
               bond
                                                                             100%
        100%




         80%                                                                 80%
                                                                                          50%           57%                                                   58%
                                                                                                                   60%                            61%
                59%        64%    66%                          66%                                                                  63%
                                                  68%
         60%                                                                 60%


                                                                                      13%
         40%                                                                 40%
               11%                                                                                     15%                                                    14%
                           12%                                 11%                                                16%            10%              13%
                                 13%              9%
               15%
                                                                                      19%                                                                     7%
         20%               7%     5%              7%           6%                                       9%         6%               9%            7%
                                                                             20%
               15%         17%   16%          16%              17%                                     19%                                                    21%
                                                                                      18%                         18%            17%              19%
         0%
                '02        '03    '04             '05          '06             0%
                                                                                          '02           '03           '04           '05           '06         '07   estimate

■Long-term debt payback/redemption
 schedule                                                       '07    '08          '09         '10       '11      '12           '13       '14          '15        '16
 Balance of long-term debt as of March, 31,
                                                               97.1   78.4     97.0       78.8        1 03.4    97
                                                                                                                 2.         104.0         104.0     86        38
 2007 (5–6 years on average): ¥973.8 billion

       CORPORATE STRATEGY 2007                                                                                         CREDIT SAISON CO., LTD.                       20
       Fund Structure–II
       ■ Long-term ratio & fixed ratio

                   Consolidated                                    Non-consolidated
                                                              Fixed ratio         Long-term ratio
                                                    80%
                                                                                                       ¥1,080.8 billion
80%                                                                                            ¥973.8 billion
                Long-term ratio                                             ¥646.7 billion
                                              70%                                                              74%
                                                    70%                               ¥772.2 billion
70%                                                           ¥511.2 billion                           72%
                                                                                 68%
                                  61%
                                                                                        62%
60%                                                 60% 428.9 billion                                  63% 60%
                    56%                                               62%
                                        61%
                                                                                57%          58%
         49%                                               55%
50%                                                 50%
                                                                     51%
40%
                                                    40%    46%

30%
          '02        '03          '04   '05   '06   30%
                                                            '02      '03        '04           '05      '06     '07   estimate




      CORPORATE STRATEGY 2007                                                   CREDIT SAISON CO., LTD.                21
Dividends

         Dividends


                            FY’05       FY’06                  FY’07
                                                               (projected)

 Dividend per
    share
                              ¥26             ¥28                  ¥28
   Total cash
    dividend
                          ¥4.6 billion ¥5.0   billion             -
 Payout ratio              11.0%        33.8%                 19.3%



CORPORATE STRATEGY 2007                                 CREDIT SAISON CO., LTD.   22
                          Credit Saison
                   Main Indicators
                  (Non-consolidated)


CORPORATE STRATEGY 2007                   CREDIT SAISON CO., LTD.
                                                                   Figures in parentheses are
  Main Indicators (Non-consolidated)                               year-on-year comparisons


                                 FY2006 results               FY2007 targets

① New applications               4.28 million (132.9%)        3.20 million (74.8%)


② New cards issued              3.60 million (132.8%)          2.70 million (75.0%)


③ Total cardholders      24.91 million (+2.12 million)       25.90 million (+0.99 million)


④ Active cardholders         12.49 million (+0.81 million)   12.95 million (+0.46 million)


⑤ Transaction volume         4,299.0 billion (136.6%)          4,691.5 billion (109.1%)

    (Card shopping)          3,780.0 billion (135.8%)         3,780.0 billion (110.1%)


    (Card advances)           865.1 billion (139.8%)           911.5.0 billion (105.4%)


   CORPORATE STRATEGY 2007                                      CREDIT SAISON CO., LTD.    23
    New Card Applications & New Cards Issued
            Emphasis on profitability and new applications for cards with high ratios of active
            cardholders

    Unit: Million                                                                                     New cards issued
                                                                              New applications

                                                                              4.28
4
                                                                                   3.6
                                                        3.22                          △            3.2
                                                                                           ¥1
                                                               2.71                      75 .08 m
3                                                                        on                %
                                                                   milli                      Yo illio     2.7
           2.5                                                                                  Y n
                                          2.41                  .06 YoY
                 2.3                                         ¥1
                          2.11                              + 33%
                                              2.09            1
                                   1.86                                                        △
2                                                                                                 ¥0
                                                                              on                 75 .90 m
                                                                          illi                     %
                                                                       1 m oY                        Yo illio
                                                                    0.8 % Y                             Y n
                                                                  +¥ 07
                                                                     1
1



    0
              '02            '03             '04            '05                 '06                 ' 07   estimate

    CORPORATE STRATEGY 2007                                                    CREDIT SAISON CO., LTD.                24
     ③ Total Cardholders & Active cardholders
              Increasing total cardholders and active cardholders through efficient marketing

      Unit: Million                                                        Total cardholders
                                                                                                  Active cardholders
30
                                                                                                          25.9
                                                                                     24.91
25
                                                             22.79
                                                                                                      00
20                                                                                                 0,0 oY
                                                                                                  9 Y
                                                                                on             +9
                                                                           illi
                                                                        2 m oY                    4%
                                15.87           16.9                2.1
                                                                   + 9% Y                      10
                14.9
                                                                     10
15                                                                                                12.95
                                                        11.68            12.49
                         8.41            8.83
10       8.07                                                                                  0
                                                                                            ,00 Y
                                                                  00                      60 Yo
                                                               0,0 oY                  +4
                                                           +8
                                                              1 Y                         4%
5                                                                                      10
                                                              7%
                                                           10

 0
              '02            '03             '04             '05                 '06              '0 7   estimate
     CORPORATE STRATEGY 2007                                                 CREDIT SAISON CO., LTD.                25
 ⑤ Transaction Volume

         Targeting a double-digit increase by continuing to expand scale of business

      Unit: ¥1 billion                                    Shopping            Cash advance


5,000                                                                        4,691.5
                                                            4,299             911.5
4,000                                                         865.1

                                              3,146.7                         Y
                                                                            Yo
3,000                                          618.9                  05
                                                                        %
                                   2,596.2                           1
            2,342.8      2,408.6
                                    518.1
                         496.4                            Y
2,000         534.2                                     Yo
                                                    %                        3,780
                                                 140
                                   2,078.1                   3,433.8
             1,808.6     1,912.2              2,527.8
                                                                              Y
1,000                                               Yo
                                                      Y                     Yo
                                               6%                      0%
                                             13                      11

  0
               '02         '03        '04        '05            '06               '07estimate
  CORPORATE STRATEGY 2007                                              CREDIT SAISON CO., LTD.   26
    ⑥ Credit Loans Outstanding
                 Steady increase in revolving credit card balances by acquiring prime customers

                                        Cash advance    ABS (Cash advance)             Shopping         ABS (Shopping)
         ¥1 billion
10,000

9,000                                                                                                      889
                                                              771                     819          10
8,000                                                                                                      256
                                                              40                                                      Shopping
7,000                                                                                  229                 Y
                                                                                  Y                     Yo
                                                              178              Yo                  7%
6,000                                        591                          0%                  10               25     ABS
                                              40                     11                30                             (Cash
                 517          542                              30                                                     advance)
5,000                          40                                                                          Y
                  40                           137                                 Y                    Yo
                                                                                Yo                 9%                 Cash
4,000                         124              30                        05
                                                                            %                 10                      advance
                116                                                  1                                         607
3,000                                                                                  550

2,000                          360             377           522
                322

1,000

   0
                  '02           '03             '04            '05                      '06              '07   estimate
                                                                                                                            27
    CORPORATE STRATEGY 2007                                                            CREDIT SAISON CO., LTD.
Reference: Credit Card Shares
             Strong performance by Gold cards and other cards with membership fees,

                              including UC, AMEX and affinity cards.

          Share of total cardholders                        Share of shopping transaction volume




                 MMC                                                     MMC
                 7.7%                                                    4.0%
          UC             SAISON                                  UC             SAISON
         15.9%             22.2%                                22.2%            22.0%

                                 Seibu                                                   Seibu
     SAISON                      SOGO                                                    SOGO
    AFFINITY                  Takashimaya                   SAISON
                                                                                      Takashimaya
                                 13.0%                     AFFINITY
                                                                                         13.2%
         17.8%                                              11.3%        
                            Postal
                            13.5%                                      AMEX           Postal
                                                                       ・GOLD          8.2%
                                                                       14。2%
  AMEX・
   GOLD                                                                          PARCO
                          PARCO
   4.1%                                                                           4.9%
                           5.8%

CORPORATE STRATEGY 2007                                                 CREDIT SAISON CO., LTD.
                    Management Strategy
                          Medium-term Management Plan and
                            FY2007 Management Initiatives



     Creating a Non-bank Financial Service
     Business with Strong Market Presence



CORPORATE STRATEGY 2007                                     CREDIT SAISON CO., LTD.
   Contents

Ⅰ.Changes in the management environment
    (1) Details of changes in the business environment
    (2) How changes in the business environment impacts our company and the industry


Ⅱ.Medium-term management vision and goals
    (1) Creating the No. 1 Credit Card Group
     (2) Becoming a non-bank business offering financial services beyond credit cards
     (3) Consolidated ordinary income goals for FY2010


Ⅲ.Outline of the Medium-term Management Plan
     Taking Up the Challenge of Innovation


Ⅳ.Priority initiatives for FY2007
     ・Responding to the changes in the industry ・Restructuring our business model
     ・Implementing a multi-financial business   ・Strengthening of Internet-based services
     ・Strengthening the Group companies

Ⅴ.Reference materials

 CORPORATE STRATEGY 2007                                                        CREDIT SAISON CO., LTD.   28
Ⅰ.Changes in the Management Environment




CORPORATE STRATEGY 2007     CREDIT SAISON CO., LTD.
Ⅰ. Changes in the Management Environment
Our shining record of 24 fiscal years of continuous growth in sales and profits
was intermitted

(1) Downsides of the current                        (2) Positive aspects of the current
    environment                                         environment

 ① Capped interest rates & total-volume             ① Steady economic expansion
         regulations                                ② Acceleration of the reorganization of the
                                                      industry
 ② Slump in consumer credit & finance companies
                                                    ③ Realization of mergers and acquisitions
 ③ Long-term rising trends in official discount       Liquidation of portfolio
          rate
 ④ Downtrend in merchant fees due to increases in   ④ Shrinking cash advance market and fewer
          public funds & public utility charges       players
   and small          statement balances
                                                    ⑤ Our company's neutrality




  CORPORATE STRATEGY 2007                                                CREDIT SAISON CO., LTD.   29
 1.Details of Changes in the Environment
(1) Revisions of laws regulating money-lending
     ① Non-bank financial companies conducting credit cards business are facing restructuring
       due to the current business environment
     ② Banks will have an advantage over non-banks due to the implementation of total
       volume regulations


(2) End of the low-interest and big financing era
    ① Steady gentle rise in short-term interest rates
    ② Movement towards an upward trend in medium-term interest


(3) Simultaneous growth across major world economies
     For the first time, the world is entering an era of simultaneous, stable economic growth
     across all the world’s major economies ⇒ movement towards simultaneous high stock prices and
     high capital
(4) Japan gets back on an economic growth track
    ① Japanese companies recovered revenues thanks to strong global economic growth
    ② Japanese stock and real estate values are growing at same pace as world asset values


(5) Development of Internet societies
    ① More than 85% of the Japanese population use the Internet regularly
    ② Increase in number of companies gaining revenues from internet use; Google, Inc. (U.S.) became
      the world’s largest media company
 CORPORATE STRATEGY 2007                                                    CREDIT SAISON CO., LTD.    30
 2.Impact of Changes in the Business Environment
(1) The impact of revisions to laws regulating money-lending
     ① Capped interest rates will reduce our company's revenue by ¥25–30 billion
     ② Tightened regulations, including total volume regulations, will add restrictions to the operations of
       credit card companies

(2) The impact of the end of the low-interest and big financing era
     ① As our company carries close to ¥1.5 trillion in consolidated interest-bearing debt, an increase in
       interest rates will pressure our revenues
     ② For our company, which foresees stable increases in operating assets, diversification in funding
       methods is an absolute must


(3) The impact of strong growth across major world economies
     ① Simultaneous growth across the world’s major economies will benefit domestic credit card companies
       only indirectly
     ② Japan’s economy may have limited growth prospects due an aging population and fewer children
(4) The impact of Japan’s economic recovery
     ① We need to take note of current trends, such as the declining population, the higher rate of working
       women and the retirement of the Baby Boom generation
     ② We need a societal structure where individuals can benefit from the strong global economic growth

(5)The impact of the development of Internet societies
     ① Internet-based communication with cardholders will be remarkably strengthened
     ② The advantages for businesses based on face-to-face transactions will be fewer over the medium term

  CORPORATE STRATEGY 2007                                                      CREDIT SAISON CO., LTD.         31
   Effect of Interest Rate Cuts on Cash Advances                                      (Non-consolidated)

                                       Q1                   Q2             Q3                 Q4
       FY2007
    Effect of interest
        rate cuts
    ▲ ¥18 billion
                               Deferment of interest              Effects of interest rate cuts
                                                                       (▲ ¥18 billion)

                                     Q1                     Q2              Q3                    Q4
       FY2008
    Effect of interest
        rate cuts
    ▲ ¥7 billion
                             Effect of interest rate cuts          Deferment of interest
                                   (▲¥7 billion)

The effects from the cash advance interest rate cuts will continue after the 2nd quarter of FY2007, but the
year-on-year effects will occur from the 2nd quarter of FY2007 to the 1st quarter of FY2008.

As a result, the ordinary income of our company will be roughly equal to that of FY2000.


  CORPORATE STRATEGY 2007                                                         CREDIT SAISON CO., LTD.     32
 Ⅱ.Medium-term Management Vision and Goals




CORPORATE STRATEGY 2007        CREDIT SAISON CO., LTD.
 Ⅱ.Medium-Term Management Vision and Goals
Creating a non-bank financial service business with strong
market presence
(1) Creating the No. 1 Credit Card Group
    ①   Market share goals; card shopping 30%, cash advances/loans 5%
    ②   Promote flexible and aggressive strategies, such as expansion of active card
        members and expansion of the business portfolio
    ③   Cut costs through drastic rethinking of our credit card business processes through Web use
    ④   Cut costs and increase profitability by reforming traditional business methods


(2) Becoming a non-bank business offering financial services beyond credit
    cards
    ①   Realize a balanced business portfolio that reduces dependence on one product
    ②   Utilize multiple means such as management integration, M&A, new businesses and
        start-up of new companies

(3) Consolidated ordinary income goals for FY2009 : ¥70 billion
    ①   The drop in revenues can be recouped in a single year and we should be back on the recovery track
        from FY2008
    ②   The target for non-consolidated ordinary income for FY2009 is ¥45–50 billion


 CORPORATE STRATEGY 2007                                                   CREDIT SAISON CO., LTD.          33
(For Reference) Medium-term Target Figures

                     FY2006 Medium-term Plan          FY2007 New Medium-term Plan



   Period                    5 years                             3 years

                    Ordinary Income in FY2010         Ordinary Income in FY2009
                    Consolidated: ¥100 billion        Consolidated:  ¥70 billion
  Targets
                    Non-consolidated: ¥80   billion   Non-consolidated:   ¥40–50 billion


Targeted increase   5-year total of 25 million             Average increase/year
  in new card
                    (includes capital alliances)
  applications                                               2.5 to 3.2 million


                       Published last year                      Review
 CORPORATE STRATEGY 2007                                           CREDIT SAISON CO., LTD.   34
Ⅲ.Outline of the Medium-term Management Plan




CORPORATE STRATEGY 2007         CREDIT SAISON CO., LTD.
Ⅲ.Outline of the Medium-term Management Plan
            Taking up the Challenge of Innovation
         Effects of the capped interest rate regulations
 Recouping: △¥30 billion consolidated △¥25 billion non-consolidated

(1) Improving sales efficiency and restructuring the
   sales network
    ① Shifting know-how and spending to high-profit products
         ・decrease or eliminate slow-moving products
    ② Remodeling of the current sales offices
         ・Eliminate and consolidate branches, satellites and counters; revision of standards
          for opening a store
         ・Reorganize CD, ATM, unmanned card issuing machines based on operation ratios
    ③ Reformation of sales techniques
         ・Accelerate membership and approval processing by using Web resources



CORPORATE STRATEGY 2007                                                    CREDIT SAISON CO., LTD.   35
Ⅲ. Outline of the Medium-term Management Plan
(2) Rearranging the business portfolio
    Moving from a credit card company to a comprehensive financial services company


 ④ Strengthen non-card operations in addition to card operations
     ・Real estate & business loans for corporations (sole proprietorships)
  ⑤ Split operations (start-up of joint processing company): 51% invested since
    April 08
     ・New company to start up in October (transferring a portion of operations)
     ・Dividing and transferring all card-related processing operations from April 08
 ⑥ Create a new profit source from a new Web-based business (⇒ next page )


(3) Securing new revenue sources using the Web
 ⑦ Promote expansion of services for Eikyu Fumetsu.com (online shopping mall)
 ⑧ Build a revenue-making business by promoting internet-based services:
   Establish a "fee business" that does not require funding



CORPORATE STRATEGY 2007                                             CREDIT SAISON CO., LTD.   36
(4) Cutting costs by using the Web

  ⑨ Renovating our business process using the Web
    ・Web statements, a Web customer service center, Web news
  ⑩ Partnership with an IT company (mutual customer attraction
    scheme)


(5) Human resource development that makes use of
    each individual’s unique capabilities
   ⑪   Mobilizing human resources through a recruiting firm
   ⑫   Management training through dispatching personnel to partner companies
   ⑬   Promote the appointment of women across the organization
   ⑭   Small headquarters and an appropriate number of directors


 CORPORATE STRATEGY 2007                                      CREDIT SAISON CO., LTD.   37
      Reforming the Operating Structure to Achieve the Medium-term Plan

By reforming our operation structure, in addition to implementing the measures outlined in the original
Medium-term Plan, we will recover ▲¥10–15 billion over a short period (estimated 3 years)



 Strengthen the fee business by increasing
 cardholder number and expanding the              Credit Business Division
 credit business                                                +
                                                  Profit and loss related to
                                                  headquarters
Drastically cutting costs by reviewing the          Ratio of expected effect : 80%
credit business                                                                          Non-consolidated
                                                                                         ordinary income
                                                   Profit and loss related to
                                                                                         ¥45–50 billion at
 Expand such businesses as the real                the Finance Division                  an early date
 estate and business loan operations                Ratio of expected effect : 10%


Strengthen businesses, create new
businesses and M&A for the card                     Ratio of expected effect : 10%
companies within the Group


               The ¥10–15 billion will be roughly distributed 50:50 for the dual objectives of
                                  increasing revenues and cutting costs.
  CORPORATE STRATEGY 2007                                                            CREDIT SAISON CO., LTD.   38
     Increased Revenues Needed to Achieve New Goals
In order to compensate for a in cut interest rates effecting two fiscal years (¥18 billion in FY2007 and
¥7 billion in FY2008= ¥25 billion), additional revenues of ¥10 to 15.5 billion are needed up to FY2009.


                                                                                                     Increasing revenues
   ① The negative
                                      ② 108 %               ③ Increased                            ・Expand the credit card business
     effects of
                          +         growth in FY      +       revenues                             ・Expand the fee business
    cut interest rates                                    from restructuring
                                                                                                   ・Create new businesses, etc.


                                                                         ③ + ¥10 to 15.5 billion
                                                                                                          Cost-cutting
                                                                                                   ・Restructure the sales network

                  ① Effects of cut                        ¥45 to 50                                ・Raise quality of credit card
                                                           billion                                 applications and decrease
                   interest rates                                                                  absolute amounts
                    ▲¥7 billion
                                                                          ② ¥4.5 billion           ・Improve operating processes
  ¥37.5 billion
                  ¥30.5 billion                                                                    ・Achieve new operational flow
                                                                                                    by making efficient use of
                                                                                                   resources, such as the Web

                                                                                                   ・Reinforce credit risk management



Estimate FY’07     Actual FY’07          Plan FY’08       Plan FY’09
     CORPORATE STRATEGY 2007                                                                 CREDIT SAISON CO., LTD.                  39
 (For Reference) Outlook for the World Credit Card Industry


      (1) VISA dominates the world market
      (2) AMEX has room to grow its share of the U.S. market
      (3) The U.S. check market is changing to electronic money
      (4) As it is, JCB will lose its market presence
      (5) VISA and MASTERCARD are listed
      (6) Most likely, banks will dominate the U.S. market
      (7) As for credit, estimated that 30% is the upper limit
      (8) Most of the retail type cards have sold out
      (9) HSBC’s presence in the U.S. is weak
      (10) The market trends in Asia are a key focus point


CORPORATE STRATEGY 2007                                 CREDIT SAISON CO., LTD.   46
          Ⅳ.Priority Initiatives for FY2007




CORPORATE STRATEGY 2007              CREDIT SAISON CO., LTD.
 Ⅳ.Priority Initiatives for FY2007

 The Key Word is . . .
     Web Usage
     Restructuring the Business Model
     Ongoing Implementation of Strategic Alliances

(1) Placing Group credit card companies on track to success

 ①   Joint venture companies started last year that will start full sales operations from
     this fiscal year
                                                                      Income contribution from Shizugin
     ・Shizugin Saison Card (April 3–)                                 Saison Card and Daiwa House
     ・Daiwa House Financial (early June–)                             Financial beginning from FY2010
     ・Yamada LABI Card expanded income contribution
                                                                                今年度
      ※Transfer of administration and Takashimaya card data from Takashimaya Credit (by May 21)
                                                                               期待効果
                                                                               約00億円
 ②   Ongoing development of new alliances
     ・Expansion of local strategies … Promote a three-way partnership to become the No. 1 Credit Card
       Group through local financial institutions + local large wholesalers + Saison


 CORPORATE STRATEGY 2007                                                    CREDIT SAISON CO., LTD.       40
(2) Reinforcing credit business profitability through Web use
 ①    Make the most of high-activity customers/expand net membership through the Web
      ・Membership promotion through Eikyu Fumetsu.com and strengthened mobile phone
      compatibility                                                                                    Income
 ②    Low-cost operation through Web use                                                            contribution
                                                                                                      from this
      ・Accelerate transfer to web statements, digitalization of                                      fiscal year
       information media, launch


(3) Growth of fee business based on Net Answer memberships
and expansion of memberships through IT industry alliances
 ①    Development and expansion of Eikyu Fumetsu.com
      ・Start service of Eikyu Fumetsu.com for mobile phones (from July)                                Income
      ・Start service of Eikyu Fumetsu.com for businesses (due December)                             contribution
                                                                                                      from this
 ②    Fee business based on internet membership                                                      fiscal year
      ・Market research business (due July), net advertising (from May)
      ・Business to support the launch of e-commerce (due October)
       ※ Goal for end of the term : Net Answer members : 2.5 million; Eikyu Fumetsu.com stores : 300 stores

  CORPORATE STRATEGY 2007                                                              CREDIT SAISON CO., LTD.     41
(4) Promote the expansion of highly active customers
 ① Increase cards for highly active customers and wealthy                   Income contribution
      ・Aggressive Shift to annual rate cards                                from this fiscal year
       (GOLD / AMEX . . . current share: 4.1% ⇒ goal: 20%)
      ・Expand the Affinity Premium Cards
 ② Asset Management and PB Service geared to premium members
 ③ Decrease or eliminate low-activity cards and applications for
   these cards in the near future


(5)   Renovate and increase efficiency of card
      application methods and sales network
  ① Review the existing nationwide sales branches (from 2nd quarter)
       ・Satellite Offices: closing 25 this year (currently 35)
      ・Saison Counters: over 20% closing this year (currently 171)
      ・Standards for opening a branch from now on: rethink control area of the branch
                                                                                      今年度
  ② Rethink standards for setting up CD/ATMs                                          期待効果
      ・Close or open branches depending on activity level and efficiency:             約00億円
       50% of branches to be closed this year
  CORPORATE STRATEGY 2007                                            CREDIT SAISON CO., LTD.        42
(6) Strengthen cash advance and loan services
①    Lower cash advance interest rates, reduce all real interest rates to below 18%
     ・SAISON . . . from July 17; UC . . . from June 11
②    Market-rate interest loan products beginning from the 2nd half of this term
     ・Provide a product that is reasonable from the perspective of the customer while
      securing revenues

(7) Start operation of joint processing company
① New company will become a 100% wholly-owned subsidiary of UC CARD
  from October
    ・Initially only the record-keeping work will be transferred to the new company
    ・We will provide 51% of the investment, and all administrative office work will be
     transferred to the new company in April 2008
② Responding to the low profitability of the credit business
    ・Solicit clients from other than SAISON and UC; estimated cost cuts of 15 to 20% by the
     time next generation system is launched
③ Will not estimate the effects of cost cuts for this fiscal year

 CORPORATE STRATEGY 2007                                             CREDIT SAISON CO., LTD.   43
(8) Implementing a Multi-Financial Business
 ① Strengthen the investment business
   ・Develop, handle and create businesses that handle investment products suitable for a
       society characterized an aging population and fewer children, more women in the
       workforce and retirement of the Baby Boom generation
      ・Asset management support for members who are affiliated with Saison Asset
       Management

 ② Develop new core businesses                                               Income contribution
                                                                             from year after next
                                                                                 fiscal year
    ・Do business that "takes a risk to secure revenue" through real estate
       financing, small business loans, etc




 CORPORATE STRATEGY 2007                                           CREDIT SAISON CO., LTD.          44
    (Reference) Changes to the Revenue Structure
■    Changes to the revenue structure
     Cash advance business share to change from 41% to 36%

  FY2006                 Shopping (37%)                Cash advance loans (41%)
                                                                                  Credit guarantees,
                                                                                  leases etc.

  FY2007                 Shopping (38%)                Cash advance loans (36%)                          ¥1billion


                 0                               100                      200                          300



■ Changes to the revenue structure by business segment
     Credit card business share to change from 83% to 73%

  FY2006                                      Credit card business (83%)
                       Credit guarantee, leases etc.
                       ・agency services, etc.

  FY2007                              Credit card business (73%)                                         ¥1billion


                   0                              200                     400                          600


    CORPORATE STRATEGY 2007                                                         CREDIT SAISON CO., LTD.     45
Ⅴ.(Reference) Credit Card Market Outlook

         ・Outlook for the world credit card industry
         ・Changes to the global market
         ・Changes to the U.S. market share
         ・Japan’s credit card industry outlook
         ・Changes to the domestic credit card market
         ・Domestic credit card industry’s share of shopping
           transaction volume

         ・Consumer credit lending balance (unsecured)
         ・Macro outlook for consumer loan market
         ・Trends in the most recent stock values of our company
CORPORATE STRATEGY 2007                                CREDIT SAISON CO., LTD.
       (Reference) Changes to the Global Market
■ Transaction Volume Share Trends by International Brands
                                                                     Global Volume Transaction Shares for 2005
70
 %
                                                                             JC B
                                                                                                          DINER S
                                                                             1.3%
60                                                          VISA                                           0.5%
                                                                     AM EX
                                                                     11.0%
50


40


30                                                                            M AS T ER
                                                            MASTER             26.9%                  VIS A
                                                                                                      60.3%
20


10                                                          AMEX

                                                             JCB
 0                                                          DINERS
       1999   2000     2001    2002   2003   2004   2005
                1999          2000       2001       2002      2003   2004           2005
                                                                                             ※Source:NILSON REPORT
      VISA     56.5%          56.9%     58.0%       59.0%    59.6%   60.0%      60.3%        ※ Combined total of credit and
 MASTER        26.5%          26.3%     27.0%       28.0%    27.7%   27.0%      26.9%         debit for VISA and
                                                                                              MASTERCARD. For other
     AMEX      13.4%          13.6%     12.1%       10.8%    10.6%   10.8%      11.0%         companies, only credit is
      JCB       1.8%          1.4%      1.4%        1.3%      1.2%   1.3%           1.3%      shown.
     DINERS     1.8%          1.8%      1.4%        1.0%      0.9%   0.8%           0.5%
       CORPORATE STRATEGY 2007                                                             CREDIT SAISON CO., LTD.     47
        (Reference) Changes to the US Market Share

     As a result of a wave of M&A (joint ventures and sale of credits), the top three companies
     control a majority (at the end of 1995, nine companies controlled the majority).


    ■Credit Balances by Issuers
                                                         Ranking               Issuer            Number Issued
             US Bancorp
                1.6%                                       1       Bank of America                        12,130
   Wells Fargo
     2.7%                                                  2       Citigroup                              10,910

                           その他
                           Other                           3       JPMorgan Chase                         10,200
Washington
                           13.1%     Bank of
 Mutual                                                    4       Capital One                             5,730
                                     America
  3.0%
                                      19.3%                5       Discover                                5,250
             HSBC
             3.6%
                Discover                   JPMorgan
                 5.8%                                    Ranking                 Issuer         Transaction volume
                                             Chase
                                             18.8%          1      AMEX                                    3,990
             Capital One
               7.6%                                         2      JPMorgan Chase                          2,938
                        AMEX
                                   Citigroup                3      Bank of America                         2,535
                        10.6%
                                    13.9%
                                                            4      Citigroup                               2,135

                                                            5      Capital One                             1,021

  ※Source:NILSON REPORT (actual figures for 2006 general-use cards)
       CORPORATE STRATEGY 2007                                                      CREDIT SAISON CO., LTD.          48
(Reference) Japan’s Credit Card Industry

      (1)   Predicted to be comprised of the three mega-bank groups

      (2)   The difference between the three mega-bank groups

      (3)   JCB’s functionality and affiliations is a key point for consideration

      (4)   30% will be the market share goal

      (5)   The capped interest rates will accelerate company restructuring

      (6)   The small payments market will be in focus

      (7)   Forecasts for the movements of foreign-backed companies

      (8)   Japan Post’s strategies and topics

      (9)   Local bank strategies and topics

      (10) The presence of non-core businesses


CORPORATE STRATEGY 2007                                       CREDIT SAISON CO., LTD.   49
 (Reference) Changes to the Domestic Credit Card Market

Mizuho FG
                                Credit Saison                                              Sumitomo
                                                                   Resona HD
                                                                                            Mitsui FG
                                                                                                          Central Finance At loan
みずほ FG
                                                                                                                                       Postal Bank
    Orico                                                               Risona
                                                                                          Mitui Sumitomo
                         Lowson                                                                Card
                                    Idemitsu      Takashimaya                                                  Quoq       Promise
                           CS


                                                                                                                                           JCB
                        Yamada     Shizugin        Daiwahouse
 Aeon Credit
                                                                                          Snayo Shinpan               Pocket Car




    Mitsubishi UFJ FG                                           Others                       NTT DoCoMo                   Sony

                                                                                                                                    Sony Finance
                                                          Toyota Finance       Takefuji
            UFJ NIcos


                                               Diners
                                                                                                      JR
                                                                                 Aifle
 Cash One                                                     Rakuren
                           Acom
                                                                                                Suica
                                                                                                View
                                               Dick                                              Card


                                                                              OMCCard
    Jacks               Mobit
                                                        GE Consumer Finance




  CORPORATE STRATEGY 2007                                                                                  CREDIT SAISON CO., LTD.
                                                                                                                                                   50
       (Reference) Domestic Credit Card Industry Share of Shopping &Cashing Transaction
       Volume
                                                                                                                            Credit Saison G

     FY2000                                                 JCB G                        FY2005                                  14.5             Mitsubishi UFJ
                                                                                                                                                    NICOS G
                                                           10.9                                                                                        15.0
                                                                  Mitsui Sumitomo G                                                                     UC
                                    当社                                                                                         当社
                                                                           10.2                                                                        親密先
                                    6.4 JCB                                                                                    10.0 出資                  0.7
                                                                                                                                   提携先
                                        6.4
                                                                                                                                    3.8
                                            JCB親 密 先
                                              4.5                                                      その他
                                                                                                       29.5                                 UFJニコス
                                                    三井住友
                その他                                   5.7                                                                                     8.9
                41.9                                三井住友                                                                                            DC 2.3
                                                    親密先4.5                                                                                     UFJニコス/
                                                                                                                                              DCグループ3.8
                                                        ニコス
                                            ニコス                                                                                               三井住友
                                           関係会社          8.2
                                             1.0
                                                                                                                                               6.7
                                                                    NICOS・G
                                                                                   ライフ      オリコ                               JCB         三井住友
                          UFJ                        UC                             1.8       3.2 イ オ ン                       6.6         グループ
オリコ
                      イオン 1.5                        4.0
                                                                        9.2                         4.4                                    5.6
 2.5                                         DC                                     ジャックス        OMC                       JCB
                       2.7 OMC               2.2                   UC・G
                                                                                      2.0
                            3.7                                                                   3.4                      親密先
 UFJ
                                                                    5.5                   トヨタ                               4.2
 親密先                                                                                       2.9
                                                   DC・G                                                                                  Mitsui Sumitomo G
  1.2      UFJ・G          DC親密 先                                UC親密先                                               JCB・G
             2.7            2.0                     4.2           1.5
                                                                                                                                                 12.3
                                                                                                                     10.9
  ※ Capital alliance partners: combined totals of LAWSON CS Card, Inc., Idemitsu Credit Co., Ltd., Resona Card Co., Ltd., and Takashimaya Credit Co., Ltd.
  ※ Close partners : Companies, etc., using the brand (The “Group” includes all affiliated companies, capital alliance partners and close partners
  ※ UFJ NICOS and DC will merge as of April 1 (the new company name is ‘Mitsubishi UFJ NICOS”)
  ※ Calculated using our own estimates (combined total of card shopping and cash advances)
     CORPORATE STRATEGY 2007                                                                                                CREDIT SAISON CO., LTD.          51
     (Reference) Consumer Credit Lending Balance (unsecured) for FY2005


                                       Credit Saison: 2.8%

                                                                Credit card companies and credit loan
                                                                companies (other than our company)
Consumer credit
(top companies)

                                                                                              ◆ Decrease in the number of companies
                                                                                                    specializing in consumer credit from the
                                                          24.1%
                                                                                                    2nd half of FY2006
                        44.6%
                                                                                              ◆ In order to keep the market contraction
                                                                                                   to a minimum without failing to meet
                                                                                                   customer needs, either the credit card
                                                          20.7%                                    companies or the banks will have to fill
                                                                                                   the gaps.
                                       4.9%                          Banks/Credit Union
                                                                     Card Loans
                                                   2.9%
  Consumer Credit (others)
                                                      Others

 ¥21.5 trillion
※Source : Taken from “Japan Consumer Credit Statistics” 2006 edition, Japan Consumer Credit Industry Association; “Consumer Credit Monthly” September, 2006,
           Kinzai Institute for financial Affairs, Inc.
※The figures for our company are the combined totals taken from the end of March, 2005 of Credit Saison, UC CARD and Saison Fundex
   CORPORATE STRATEGY 2007                                                                                        CREDIT SAISON CO., LTD.                      52
(Reference) Trends in the Most Recent Stock Value of Our Company

       Among surfacing industry risks, we must ascertain whether we will be able to
        continue to achieve the mark necessary to be seen as a growing company


                      Trends of stock price of Nikkei 225 and our company after 2003 month-end price 2006/3=100)

120
                                               Credit Saison                 April 5, 2006 stock price at ¥6,730
                                               Nikkei 225                  Aggregate market price ¥1.2181 trillion
100



 80
                                                                                   April 5, 2006 stock price @
                                                                                              ¥6,730
 60                                                                                 Aggregate market price
                                                                                         ¥1.2181 Trillion

 40

                                                                                 May 18, 2007 stock price at ¥3,350
                                                                                 Aggregate market price ¥607.3 Billion
 20



  0
      03/1   03/4   03/7 03/10 04/1     04/4    04/7 04/10 05/1     05/4   05/7 05/10 06/1      06/4   06/7 06/10 07/1   07/4

 CORPORATE STRATEGY 2007                                                                        CREDIT SAISON CO., LTD.         53
  (Reference) SAISON Cardholders Exclusive Racehorse Lovers’Joint Capital Investment Program


  Get a taste of being a racehorse owner! Your dream can come true with the SAISON Card!




                                                  The Racehorse Lovers’ Joint Capital Investment Program is where
                                                the investment rights to own one racehorse will be divided up into 200
                                                 or 400 lots, and members will be invited to invest in these lots. If the
                                                     racehorse invested in should win a cash prize, you will receive
                                                      dividend distributions based on the number of lots you own.

◆This year, we have 20 promising racehorses set aside for the THOROUGHBRED CLUB SAISON.
Club Member Benefits                                   The Latest Club News
・You can pay using your Saison Card                    ・Announcing the latest line-up of FY2007 recruited racehorse
(earn SAISON Permanent Points)                          The lineup for FY2007 recruited racehorses has been chosen. Offerings
・Receive a monthly newsletter                           begin on Monday, July 2.
・Invited to participate in an annual visit to the      ・Invitation to the Horse Visit Tour
racehorse breeder                                        1 night/2 day tour from Sat., June 16 thru Sun. 17 visiting the Cosmo
・Receive dividends when your racehorse wins              View Farm in Niikappu, Hokkaido, the home of thoroughbreds. Decide
                                                         now to assess your racehorse’s performance on this tour (now accepting
・Visit our website for details
                                                         applications).
       www.saison-tc.co.jp
   CORPORATE STRATEGY 2007                                                                    CREDIT SAISON CO., LTD.             54

				
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